RAMAKRISIINA MISSION VIVEKANANDA COLLEGE (AUTONOMOUS) SEMESTER END EXAMINATIONS, NOVEMBER - 2017 JON TUAKAMOL/ BMOL/16/07UBMAMOL PRINCIPLES OF FINANCIAL ACCOUN TIME: 3 Hrs. Max. MARKS: 75 SECTION -A (SX 5=25) Answer any FIVE questions. AL What are the differences between single entry and double entry? 2.) What are the causey for difference of cash book balance and pass book balance? IF MEX connmeced business on 4:04.2016 with a capital of Rs. 3,50,000. Ie immediately purchased Plant for Rs. 1.00.000 and furniture from Mohan for Rs 30,000, On 0},10,2016 he borrowed Rs. 50,000 from a bank @ 12% interest per annum interest yet to be paid) and introduced additional capital of Rs. 25,000. His assets and Niabilities on 31.03.2017 ax ish al bank Ks. 20,000, Debtors Rs.4,40,000, Stock Rs.95,000 and Creditors for goods purchased Rs.97,500. Ie withdrew @ Ks, 1,250 p.m at the end of each month. Prepare statement of Profits atter providing depreciation un furniture and on plant @ 10% ‘A Company purchased a machinery for Rs 1,20,000 on 01.04.2014 and on 30" june 2015, it acquired another machinery at a cost Rs 66,000, On 31.12.2015, the original machine hus become obsolete and was sold for Rs 80,000, Prepare machinery account for Two years ending 31.03.2016, providing depreciation @15% pa. on WDV method A The balance of cash book of a trader on 31.12.2016 is Rs 90,000. From the following paniculars, prepare bank reconciliation statement. ¢i) Cheques issued but not presented Rs 17,000. (ii) Cheques deposited but not collected Rs 30,000. (iii) Bank interest credited in the pass book Rs 5,000 (iv) Bills collected and credited in the pass book only Rs. 8,000. (v) Renuka cheques deposited dishonored Rs. 5,000. 6. Pass journal entry and prepare suspense A/c to rectify the follawing errors. (3) A purchase of goods for Ks.75U from Chakravarthy was dehited to his A/c. (b) A sum of Rs 350 received from Maya, a debtor debited w her A/c. (c) Discount allowed Rs 75 was credited to discount received A/c. wv and () are partners ina firmn sharing profits in the ratio of 4:3. ‘They admit R into firm for 1/3 profits for which he brings Rs. 60.000 as capital and Ks. 28,000 as his share of goodwill in cash. ‘The goodwill of the firm appeared Rs. 42,000. Pass journal entries and calculate ratios in the books of the firm. : SECTION—B (SX 10= 50) Answer any PIVE questions. 8. Explain the different concepts of accounting. A The position of ¢ business under single entey system on 01.04.2016 was as under: Premises Rs. 5,00,000, Stock Rs, 2,50,000, Debtors Rs, 2,00,000, Furniture Rs. 20,000 and Creditors Rs. 1,70,000. An Abstract of the cash book is given below: Receipts [Panes Debtors | Overdraft t | 8,00,000 i TT po I ~ Creditors C | Cash in hand] iC - ‘Cash at bank I 250000 |___ 2.50.000 | The following additional information is available on 31,03 2017: Stock, K» 3,00,000, Debtors Rs. 2,50,000 and Creditors Rs. 120,000, Provide deprectation @ 10% on premises, 15% on furniture and bad debts provision 2.5%, Prepare Trading profit und tos» account and balance sheet as on that date. Scanned with CamScannerJO Oar or Tory 172014, another mache Re 60.000 The compa Atos change a ty 18% 6p haved for Bs 80,000 and incurred wnstallation expenses Rs 20.000 On sod! for RX 40,000 On OF 10 2018 thd machinery was purchased for syle Mite pa on W PV method On Oh Mh 20160 has been Sthe ditt ine date. Show the machinery Alc for d years ending V1" December 20016, with the chanye in method of providing achinery way 9 prow ence arount to be adjusted on the 5 lee! ormal cost depreciation retrospectively, Waelder pt fire on 1 March 2017 1,800 The stook as fully insured, from the following details calculate claim Stock on 3103 2016 Ry 26,544 Stock on 01.04 2015 Ry. 19,228, Purchases from 01.04.2016 to the date of fire Re 70,000 Purchases for the year 2015-16 Rs. 90,516. Sales from 01.04.2016 to the date of fire Rs. 1,00,000 8, ar 2015-16 Rs, 1,04,000. Additional information Tn December 2016 goods costing Rs. 5,000 were given as free samples for advertisement purpose and a clerk has musappropriated unrecorded cash sales of Rs. 2,000. No entry has been made. ¢ premises of a merchant {his stock was damaged except 2 tock of Rs MM Jes fore th ve Scetha and Geetha had the following mutual dealings and desirc to settle their account on the average due date Purchases by Seetha From Geetha Rs. 1996 January 6 6 February 2 : March 31 200 Sales by Sectha to Geetha 1996 January 6 1,160 March 9 240 Ascertain the average due date = March 20 100 13. On 24-92 Gopal opened an account with canara bank depositing Rs.5000. His further deposits were: 29” Jan Rs.2,500; 20” March Rs 3,000; 20" MayRs.3.500. His Withdrawals were Rs.6,000 pxr20" February; Rs.5,0096n 20" April and Rs. 2,580 on 20" June. Prepare the account current to be rendered by the bank for the period 30” June 1992 charging interest at 5% p.a on custamer’s Debit balance and 2% p.a on cusiomers’s credit balance. € partners sharing profits in the ratio of 3:1.Their Balance Sheet stood as under on 31.12.2016. s Rs. Asscls Rs. | 30,000 Stock 10,000 50,000 | Bills receivable 1,000 ___ 5,000 | Debtors 8,000 | __40,000 | Less Provision 500 7,500 _ Cash 18,500 __ "| Machinery | 52,000 Furniture 6,000 95,000 | 95,000 | is admitted in to the firm as a new partner for 1/4" share in future profits introduciny but not hi share of poodwill (1) Stock and furni for doubtlal debts should be ine: i 2 capital of Rs.20,000 re to be inert d by 10% (2) Machinery is revalucd at Ry 45,000 (3) The provision ed 10 Ro. 1,100. (4) Goodwill af the firm is valued as Rs. 40,000. Prepare Revaluation Account and Balance Sheet after C's admission. Scanned with CamScanner